Lewis Ranieri, known as the father of securitization, told CNBC Monday that "bonds backed by investor-owned rental properties carry no risk."

CNBC said Ranieri has other regrets about the MBS market, but he's confident about the rental space.

Lewis Ranieri expressed regret that the mortgage-backed securities market imploded the way it did, bringing the U.S. economy along with it.

According to Ranieri, the rental bonds are different "because it's almost done like the European covered bonds, because there's enough cash flow and they can replace cash flow to pay the bonds," he said in an interview.